Maximum Sharpe Portfolio

for period ending January 31, 2019

This portfolio recipe is provided by VizMetrics. t.shar is the Recipe ID for this portfolio recipe. This Recipe ID appears in the scatterplots below and on the Summary Page showing all portfolio recipes. You can invest in this portfolio recipe using the "Maximum Sharpe Portfolio" Ready-to-Go Folio at FolioInvesting.com. See How to Invest (below) for more details on how buy this portfolio recipe.

Use this page to find a high return, lower risk portfolio recipe using the Choose – Invest – RebalanceTM process

Choose a portfolio recipe that meets your needs by comparing return, risk, and cost. See How to Choose below.

Invest in a portfolio recipe by buying the underlying ingredients. See How to Invest below.

Rebalance your portfolio to keep the mix of ingredients up-to-date. See How to Rebalance below.

Risk vs. return for t.shar: The scatterplots below show the best portfolio recipes as dots closest to the green smiley the at top left of each scatterplot. The yellow dot shows the total return and risk for this portfolio recipe. The risk is measured by maximum loss over each period. Any dot closer to the top left corner has shown better performance using this metric.

The location of ●t.shar and the identities of all the ● portfolios on the 3, 5, 7, and 10 year graphs are available to subscribers only. Upgrade your subscription. Only $15 per month. Cancel anytime.

Description Maximum Sharpe Portfolio gives investors access to a dynamic portfolio that uses an asset allocation algorithm that maximizes risk-adjusted return as measured by the Sharpe Ratio. This portfolio recipe uses exchange-traded funds and uses a dynamic asset allocation algorithm to maximize the portfolio's Sharpe Ratio, which is a measure of risk-adjusted return.

Ingredients used This portfolio recipe invests in exchange-traded funds (ETFs) chosen from a set of 8 possible asset class ETFs. The percentage allocation (i.e., weighting) to each of the chosen ETFs is selected using the algorithm for this portfolio recipe.

Peer Group Tactical: DIY

Tactical: This is a Tactical (i.e., dynamic, active) portfolio that is updated at the beginning of each calendar month. Tactical means that the ingredients and allocation to each ingredient can change every month. This portfolio recipe is updated monthly to reflect the new allocation.

You can see how this recipe has performed compared to its peers by clicking on any "Rank: Group" link in the Compare sections, below.

Methodology This portfolio recipe is created using an algorithm that chooses the ingredients and weightings for each of the asset class ETFs in this portfolio recipe. The Maximum Sharpe Portfolio uses a tactical (also called "dynamic" or "active") asset allocation approach. This portfolio recipe is allowed to choose from 8 ETFs that represent major asset classes. The steps to create this portfolio are as follows:

VizMetrics chooses the set of possible asset classes that will be used for this Folio's asset allocation, which are the following: U.S. Large Cap Equity, U.S. Small Cap Equity, NASDAQ 100 Equity, U.S. Real Estate, U.S. Long Term Treasury Bonds, Emerging Markets Equity, International Developed Markets Equity, and Gold.

VizMetrics chooses one ETF to represent each asset class, based on liquidity, history, and cost considerations. The ETFs chosen to represent the asset classes are as follows: SPY, IWM, QQQ, IYR, TLT, EEM, EFA, GLD.

VizMetrics runs the VizMetrics Max Sharpe investment algorithm to choose the optimal asset allocation portfolio based on the Sharpe Ratio.

VizMetrics determines the weighting (% allocation) for each asset class ETF based on the chosen asset allocation.

Cost Access to this portfolio recipe is included at no extra charge as part of your VizMetrics Investor subscription. This portfolio is a "Ready-to-Go" Folio that works with the Folio Unlimited Plan at FolioInvesting.com. This allows you to purchase and rebalance all the underlying ETFs in one simple transaction. See How to Invest, below.

Recipe ingredients for this portfolio recipe appear on this page only if you have subscribed to VizMetrics Investor. Upgrade your subscription to see the full list of recipe ingredients and % allocation to each ingredient.

Once you have subscribed to VizMetrics Investor, you can invest using this portfolio recipe with a "ready-to-go" Folio at FolioInvesting.com. Buy and rebalance with just a few clicks.

Update frequency: The recipe for this portfolio can change monthly. In other words, the ingredients and percentage allocation to each ingredient can change at the beginning of each month. Therefore, this portfolio requires a few minutes each month to buy or sell the ingredients to match the updated portfolio recipe.

Where to get the recipe updates&nsbp;&nsbp;This portfolio recipe is available to VizMetrics Investor subscribers. Upgrade your subscription. After subscribing, the exact recipe (ingredient plus percentage allocation to each ingredient) appears on this page under a new section labelled "Recipe ingredients"Rebalancing stepsIf you've invested using the "Ready-to-go" portfolio recipe at FolioInvesting.com, you can quickly update your portfolio each month with a few clicks using automated settings. See How to rebalance a Ready-to-Go portfolio for details.If you've invested at another brokerage, you need to update this portfolio each month to adhere to this portfolio's recipe. See How to rebalance your portfolio